Q3 2025 Fund Commentary

Market commentary

Emerging markets navigated a mixed environment in the third quarter. While global trade issues continued, monetary easing and a weaker U.S. dollar supported capital flows into emerging economies. Central banks in several regions cut interest rates to support growth.

Emerging markets equities gained. The MSCI Emerging Markets Index rose 13.3%, outperforming developed markets. Latin American markets posted solid returns. Strong corporate earnings and easing monetary conditions supported Brazil and Mexico. Asian markets, including China, Taiwan and South Korea, benefited from demand for artificial intelligence and foreign investment.

The industrials and financials sectors outperformed, supported by infrastructure spending and strong domestic consumption. Information technology stocks led gains in Asia, while consumer discretionary names were mixed given tariff pressures.

Performance

The Fund’s overweight exposure to Q Technology (Group) Co. Ltd., Sino Biopharmaceutical Ltd. and Gold Fields Ltd. contributed to performance. Q Technology benefited from stronger shipment updates for camera modules and better-than-expected profitability. Sino Biopharmaceutical’s stock rose because of its interim results and drug growth. Gold Fields benefited from higher gold prices and investor interest in gold producers.

Overweight exposure to DigiPlus Interactive Corp. and Solar Industries India Ltd. detracted from the Fund’s performance. DigiPlus Interactive was affected by policy-related headlines and uncertainty around the regulatory outlook for online gaming in the Philippines. Solar Industries’ stock fell because of a reset to its outlook and investor profit taking. Exposure to Alibaba Group Holding Ltd., although underweight, detracted from performance because of mixed results and a cautious outlook for consumer activity in China.

At the sector level, security selection within information technology, financials and health care contributed to the Fund’s performance. Stock selection in consumer staples, consumer discretionary and materials detracted from performance.

At a regional level, selection within China, India and Mexico contributed to the Fund’s performance. Stock selection in South Korea, South Africa and the Philippines detracted from performance. At a factor level, growth stocks contributed to the Fund’s performance, while value stocks detracted from performance.

Portfolio activity

Portfolio activity was an outcome of the sub-advisor’s process, which are driven by a stock selection, optimization and vetting process that runs daily.